What tax do I pay selling my dental practice to a corporate buyer?

If you sell your shares in a dental company, or your share of a practice you own personally, the gain is yours and is taxed at 18% on the first £1 million where Business Asset Disposal Relief applies. If the company sells the practice's assets, the gain belongs to the company. The buyer's offer sets out which of the two it is.

Share sale and asset sale

A share sale: You sell your shares in the company that owns the practice. The gain is yours, and Business Asset Disposal Relief can apply if you meet the 5% and two-year conditions.
An asset sale: The company sells the practice, its goodwill and equipment. The gain is the company's, taxed under corporation tax.
A practice you own personally: As a sole trader or partner, you sell the business and the gain is yours, with the relief available after two years of ownership.

gov.uk, Business Asset Disposal Relief eligibility. Checked 13 October 2026. 2026/27 rules. The Budget on 28 October 2026 can change them.

Practices that incorporated

Moving a practice into a company in exchange for shares can defer the gain into the shares under incorporation relief. For transfers from 6 April 2026 the relief has to be claimed, by the first anniversary of the 31 January after the tax year of the transfer. Before then it applied automatically.

A deferred gain comes back into charge when the shares are sold, so the date and terms of the incorporation affect the tax on a later sale.

Part of the price paid later

A deal can pay some of the price on completion and the rest later. How that later money is taxed depends on whether it can be valued at the sale: deferred payments and earn-outs.

For a practice incorporated on or after 6 April 2026, incorporation relief has to be claimed.

Where this fits

We advise on the pension and the proceeds around a practice sale.

Pensions and tax for GPs, dentists and other professionals Get a complimentary health check

The advisers for this subject

Sunny Bharj

Independent Financial Adviser

Tony Springer

Independent Financial Adviser

Advising through Equity & General Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority. Check the firm on the FCA register under number 474163.